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The following financial information is available on the Haverty Company: Current per share market price $25.00 Most recent per share dividend $2.00 Expected long-term growth
The following financial information is available on the Haverty Company:
Current per share market price $25.00
Most recent per share dividend $2.00
Expected long-term growth rate 4.0%
Haverty can issue new common stock to net the company $20 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%).
Group of answer choices
14.4%
13%
13.4%
12.7%
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